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The Total Money Makeover

The Total Money Makeover: A Proven Plan for Financial Fitness: Ramsey
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I have heard of the philosophy of not needing a credit history or credit cards, but never really believed it could work for me until I read this book. Ramsey describes many carefully planted myths about money and money management that hurt normal people and benefit companies and how our ignorance of this is killing us financially. We are trained by meticulous marketing techniques to live a lifestyle that will keep us in debt forever (a lesson I've lived personally).

Read this book to get a practical and easy-to-implement plan that will get your personal finances under control. Stop wasting money, stop worrying about the future, stop being a slave to your debts. And, yes, I'm debt free and have been for more than four years now. Never again.

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The Quick-Read Guide to the Credit Card Act of 2007

(Image used under: Creative Commons 3.0 [SRC])

This has promise. Apparently, the Credit Card Act of 2007 will ban some of the less consumer friendly practices of credit card companies.

Here are some of the provisions and what I think they mean (I am obviously not a lawyer):

SEC. 101. PRIOR NOTICE OF RATE INCREASES REQUIRED Not only do they have to give you advance warning that your rate will increase, but they can only apply the increase to balances that you add after the date of the increase. That means the new rate doesn't apply to your old debt.

Well duh. I can't believe they get away with this now.

SEC. 102. FREEZE ON INTEREST RATE TERMS AND FEES ON CANCELED CARDS If the terms, fees, or interest rate is going to change, you can cancel the card and keep the rates and terms from before the change. In other words, you can't be forced into new terms just because you have an outstanding balance.

My friend called me last night (literally) to ask me about this very question. I guess if there's a law in the works to "fix" this, then it's definitely broken now. I told him his only chance was to transfer the balance to a new card and I guess I was right (for now).

SEC. 103. LIMITS ON CHARGES OR FEES FOR TIMELY PAYMENTS OR NON-USE You can't be charged a fee for paying more than the minimum balance. You can't be charged for paying the card off. You can't be charged for not using the card.

Holy Guano Batman! There are companies that do this?

SEC. 104. PROHIBITION ON OVER-THE-LIMIT FEES FOR CREDITOR-APPROVED TRANSACTIONS You can't be charged a fee for going over your limit when it was a transaction the credit card company approved.

Because they approved you after all.

SEC. 105. PROHIBITION ON UNIVERSAL DEFAULTS This limits the ability of the credit company to raise you rates based on your credit score.

This doesn't actually prevent it entirely, but it requires that if they do, they have to make it extremely clear in the agreement before you get the credit.

SEC. 201. PAYOFF TIMING DISCLOSURES and SEC. 202. REQUIREMENTS RELATING TO LATE PAYMENT DEADLINES AND PENALTIES

These both have to do with being clear about the timing of your payoff balance and fees. This happened to me where I paid a card off completely only to find they charged the interest just before the payment hit thus leaving me a tiny balance to discover later. Bastids.

SEC. 301. EXTENSIONS OF CREDIT TO UNDERAGE CONSUMERS You can't give credit to minors unless there's parental permission, the minor shows the means to pay the debt themselves, and they have a certification of having attended a consumer credit counseling session PRIOR to taking the debt.

This one's a bit of a rub. Minors can already walk away from any debt because you can't enter into a contract with anyone under 18 anyway. I'm not certain that this changes anything other than for minors who don't realize thay can tell the credit company to shove off if that company is stupid enough to give them credit in the first place.

Summary

That's most of the really important stuff anyway. The Consumerist has a link to an online form that will help you tell your congressmembers to support this so be sure to head over there for it. Tags: ,

LIFE Board Game Twisted to Sell Credit Spending Philosophy to Kids

(Image used under: Creative Commons 2.0 [SRC])

This stuff drives me crazy. I really, really hate companies who target kids in this way.

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Check out one of my guides/tutorials:

warranties Tutorial
|INDEX|next: Extended Warranties
First, always learn what coverage you get for free from the manufacturer.
When offered an extended warranty, make sure you understand the basics.
They want you to buy it, but is it as easy to use as they say?
Know beforehand what circumstances and terms put the purchase of a warranty in your favor
Once you need to use the warranty, make sure you know the steps to take.
Finally, learn why you should even bother with this mess.
Now it's time to make the decision of whether to buy or not.

... or check out any of my other guides and tutorials by clicking here!

Manufacturer Warranties

Products you purchase in the store almost always have warranties already. Depending on how good it is, you could be completely wasting your money buying an extended one when the default one will do.

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Extended Warranties

What is an extended warranty and how do you know when you see one?

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Surprise! You're Not Covered

If you're going to spend your money on a warranty, first consider all the factors.

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Learning the Warranty Odds

Learn what important aspects of a warranty you need to look for to make sure you're getting a good deal.

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How to Use Your Warranty

Once it's time to use your warranty, make sure you know how to navigate the system.

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Warranty Successes

Read some examples of how I've personally used warranties in my favor over the years.

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Warranty Decision

In the end, how do you decide whether to buy the warranty or not?

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